Intuitive Surgical Inc
Introduction
and background
The
huge company was established in 1995, it was one of the first on developing on
the mechanical feels mainly at the intuitive surgery. It contains automated
machines who work on their won and the specialists supportive with the latest
technology of 3D and many of the equipments are used for many of the
strategies.
This large company has simultaneously
bringing up the new development since its da Vinci surgical system, it consists
of more than 1200 frameworks in doctors facilities in all the places. With the
new and latest technology and the products are expensive as it does not have
any competition in the market place so far.
Considering the case
and its background the company was established back in 1995 at California with
as much as employees of around 900, it has had many training centers in U.S.
and 2 in Europe. The sales and the marketing of the organization are all depended
on their sales representatives and their distributors. When it comes to their
latest da Vince xi it has one of the best technology and the features are
really unique as they were the one first to introduce the model I think they
have been keeping themselves as the market leader with their effective products (Surgical
Intutive Inc, 2015) . But when it comes to the pricing of
the product it is quite expensive in comparison with other normal products but
looking at the specifications and the growing industry we see surgical
equipments as the highly growing market with lots of scope. (Alan, 2014)
In 2000 when intuitive
surgical has made their offerings to the market it was again tailored by the
nest successful offering in 2003 also coming to the strategy it has acquired
company name computer Motion, Inc.. This was its initial and foremost
competitor after acquiring it has strengthened its intellectual property
holding.
SWOT
analysis of Intuitive Surgical Inc.
SWOT
analysis provides the clear picture to the organization about their strength,
weakness, opportunities and threats which lead them to develop their core competencies
and incorporated core competencies will lead the company for the best
competitive advantage to offer to their competitors, markets and people.
Strength
·
It has created
barriers to entry as they have patented more than 650 in U.S. only and several
in foreign markets, so they have made sure that the other competitors have to
face a great great challenge to enter into the market of surgical equipments.
·
Acquisition of the
competitors company are their strength as they are large and have big capital structure
and they can sweep the competitors from the market as Coca cola and Gillette
are doing on the market.
·
Latest technology with
no competitors in the market which has led them to be a market leader in case of their Da Vinci
robots products, which are really expensive but the people are bound to pay the
money.
·
They are creating
monopoly in the market mostly in the robot assisted surgery.
Weaknesses
·
The main problem I see
in the case is the cost the cost of maintenance and operating is really very
high to maintain.
·
As the equipment is
all about holding technology it is tougher for the normal people to accept as a
change and to adopt the technology on their surgical platform.
Opportunities
·
The growing and
changing market growth are their biggest opportunities.
·
Their best ever Da
Vinci system which they have introduced to the market.
·
Looking closely at the
market rates about 74% of surgical people uses the Da Vinci System for the operations.
·
For the very
complicated works and the surgery with the help of robots surgeries are done
where the chances of errors are really less in comparison with manual hand
surgery.
·
The changing perceptional
in the growing technology is the opportunity for the Intuitive surgical Inc.
Threats
·
Technology and robots
are the biggest threats for the company as the issues of using them as a
surgical friend has been already global issue.
·
In case of any errors
and defects in the robots the company has to be liable for all the damages and infect
it could get some legal irritation and loss the battle as we have seen many
other companies suffering.
·
When the patent right
and the license expires it is quite sure that the competitors would love to
enter to the new market and find out the ways of doing business different than
the Intuitive Surgical are doing. So it could be their greatest threats.
·
As the technology is
really changing in the decided there are Chances of low cost products coming to
the market and there are also chances of sudden disruptive technology which
could manipulate the market
Present and past strategies of
Intuitive surgical Inc
Looking
at the case there have been a lot of strategies followed by the company so far
to be in the top they have acquisition competitors company name computer motion
and created themselves as the market leader which has been the strategy to cut
off their face to face competition not only this they have been following
strategies like expensive products on their best Da Vince systea as the product
has very high features and they are even unique in the market place so they
have made people compel to buy their products with their price, I see this as
the bargaining power of suppliers. As they also have got license to operate
from FDA this also helps them to make competitive advantage of their product. (Agrawal,
2010)
Conclusions and recommendations
Company
is the leading brand in the robotics surgical equipments and due to the high
entry barriers to the other companies and other products it has successfully
created monopoly to the market. They have the latest technology of 3D and they
have continuously improved themselves in the field of the technology what we
can see is they have already a leader and they tend to make more brand image
and recognition in the sight of the people. The company prosperity and growth
are becoming higher which has been their objective.
Due
to their high cost product I think the competitors are waiting foot the right
moment to enter into the market to coverage the market with their low cost and
other effective products to the market so my recommendation to the Surgical Inc
is to make they flexible and think in the way of competitors. In the long run
when the Da Vince system product life cycle will be at either deckling or at
maturity they must be sure about looking at another perspective and innovation
approach to deal with market with their desirable product. As the patent is
going too expired by 2016 they must be sure about extending their product and
to introduce other products to the people.
Research
and development in the field of surgical Inc is also very important for now for
the company they must be focus on continuous improvement and the development in
the field of the robots and their surgical care system. They should be giving
their hand to hand to the newest technology and update their products before
competitors strike to their other customers. They must also be focus on the low
cost leadership to the countries like Asia where the market is high but high
cost does not work here.
So
focusing on the strategy of the product differentiation and low cost leadership
can lead them to the coverage of the market and as well as brand awareness too
many of people, before their patent expires they must keep going forward than
any other companies.
Bibliography
adhikari, D. r. (2009). Strategic Implementation.
kathmandu: Buddha Publication.
Agrawal, G. R. (2010). Strategic Management. Kathmandu: M.K.
publishers.
Alan, H. N. (2014). Intuitive Surgical, Inc. In J. A. Pierce II, &
R. B. Robinson, Business Strategy (pp. 17-1). McGraw-Hill Irwin.
Surgical Intutive Inc.
(2015, July). Retrieved July 2015, from Surgical Intutive Inc:
http://www.intuitivesurgical.com/company/faqs.html#15
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